Volkswagen to Invest $86 Billion in Electric Cars
Volkswagen has announced plans to invest $86 billion in the building of electric cars, by converting the German factories in Emden and Hanover to develop zero-emission and self-driving cars.
The Volkswagen factory in Hanover will be retooled to build the all-electric VW ID.BUZZ microbus, as well as large premium-branded electric sports utility vehicles for Audi, Bentley and Porsche, which will share common vehicle underpinnings.
The VW factory in Emden will be retooled to build electric cars and production of the combustion-engined VW Passat sedan will be shifted to a factory in Bratislava, Slovakia where VW will also build the next generation Skoda Superb.
Volkswagen is a German automaker with its headquarters in Wolfsburg. The group’s biggest market is in China, which delivers 40% of its sales and profits.
In October 2019, the automaker partnered with Siemens to unveil an electric Volkswagen Golf, dubbed e-Golf, in Rwanda. The electric car project followed the Rwandan government’s initiative to stimulate electricity demand, bridging the 81MW demand gap.
In May this year, the company again announced plans to invest $2.33 billion in two separate Chinese electric vehicle firms, setting a giant print in the world’s biggest auto market.
According to the company, they will invest $1.1 billion to take a 50% stake in the state-owned Anhui Jianghuai Automobile Group (JAC Motors), while raising their stake in an existing electric vehicle joint venture with JAC from 50% to 75%.